A South Korean manufacturer of automotive parts hopes to establish its U.S. headquarters in Indianapolis along with a major production facility, investing a total of $16.8 million and hiring 180 workers.
Daechang Seat Co. LTD USA has applied for tax breaks from the city of Indianapolis on $3 million in planned renovations to a 128,800-square-foot industrial building at 8150 Woodland Drive on the city’s northwest side, as well as $13.8 million in equipment for the facility.
The project is expected to create 180 jobs at an average wage of $21.32 an hour, according to city filings on the tax break application.
Daechang would lease the building from owner Exeter 8150 Woodland LLC. Exeter is a co-applicant for the $3 million real property tax abatement, whereas Daechang Seat Co. is the sole applicant on the personal property tax abatement for $13.8 million.
Representatives for parent firm Exeter Property Group did not immediately return calls for comment on Monday morning.
Founded in 1979, Daechang Seat Co. specializes in manufacturing seat frames for compact, medium and large cars, as well as commercial vehicles. It has five factories in its home country and 11 more around the globe in China, Turkey and other nations.
The Indianapolis Metropolitan Development Commission will consider the requests at its meeting Wednesday afternoon. Both requests have been recommended for approval by MDC staff.
“If [Daechang] does not establish its U.S. headquarters in the Exeter building, the company would likely consider other sites throughout the Midwest for the project,” according to MDC staff analysis. If the project proceeds as planned and is successful, it’s possible that Daechang’s vendors and suppliers would consider Marion County for expansion.
Both tax abatements are for 10 years. The real property tax abatement would save the applicants $135,249 over 10 years. They still would pay $137,981 in taxes for the building revamp over the decade, after which they would pay an estimated $27,323 annually.
The personal property tax abatement on equipment would save Daechang $751,962 over 10 years, during which time it still would pay $504,899 in taxes. After the 10-year abatement, Daechang would pay an estimated $107,731 annually in personal property taxes on the equipment.